Gold, silver climb as U.S. dollar retreats from 20-year high
Gold and silver prices climbed on Friday as the U.S. dollar weakened and the euro rose after the European Central Bank raised its benchmark interest rates Thursday.
Price action
-
Gold futures
GCZ22,
+0.60%
for December climbed $18, or 1%, to $1,738 per ounce on Comex -
Silver futures
SIZ22,
+0.61%
for December climbed 17 cents, or 0.9%, to $18.62 per ounce. -
Palladium futures
PAZ22,
+0.70%
for December climbed $23, or 1.1%, to $2,170 per ounce -
Copper futures
HGZ22,
+1.47%
for December climbed 6 cents, or 1.7%, to $3.59 per pound.
What analysts are saying
The bounce in gold and silver was attributed to the softer dollar, which weakened in the face of euro strength one day after the European Central Bank hiked interest rates by 75 basis points, analysts said. Previously, the U.S. dollar index
DXY,
had been trading at its strongest level in two decades.
While the euro initially slipped following the ECB’s rate-hike and statement on Thursday, the shared currency has rebounded as investors anticipate another 75 basis point hike next month.
“Looking at the ECB’s comments yesterday it seems that the European Central Bank (ECB) is prepared to raise interest rates by an additional 75 basis points (bps) the next month if it is determined that such a move is necessary,” said Naeem Aslam, chief market strategist at Avatrade.
